Executive Compensation Process Flow

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Screenshot of the first page of Executive Compensation Process Flow

This sample process flow focuses on steps for the creation, composition and review of executive compensation packages and the submission of compensation reports to the SEC. Sample steps include: the board of directors creates a compensation committee; the board of directors selects committee members; the compensation committee establishes a compensation committee charter; the committee selects compensation consultants to help with the executive compensation review; the board of directors reviews the compensation philosophy and structure; the committee reviews executive compensation; and the company determines the composition of employee compensation packages. This document should be used as a general guide to understand and review this business process. Organizations should customize this tool to ensure that it reflects their business operations and continuously monitor the process to ensure that the steps described are accurate.

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